Business · Markets · 8 hrs ago
US stocks rise on strong company profits as AI shares remain volatile
US stocks rose as companies reported stronger profits, despite early losses during the session.
The S&P 500 gained 0.3 per cent, the Dow rose 1.1 per cent and the Nasdaq added 0.1 per cent.
AI stocks continued to swing, after a sell-off earlier in the week had also hit markets in South Korea and Japan.
Investors are weighing the cost of AI chips and data centres, with many companies borrowing to fund their spending.
Rising bond yields are making borrowing more expensive, adding to concerns about how long the AI investment boom can continue.
The Australian sharemarket is expected to open higher, with futures pointing to a rise of 1.1 per cent after the ASX slipped on Thursday.
US stock indexes rose as stronger-than-expected company profits helped offset losses in artificial-intelligence shares.
The S&P 500 gained 0.3 per cent, the Dow Jones Industrial Average rose 1.1 per cent and the Nasdaq composite added 0.1 per cent.
Marsh & McLennan, Kimberly-Clark and Bank of New York Mellon advanced after reporting stronger results or forecasts.
AI shares remained volatile amid concerns about the cost of data centres and chips, and higher borrowing costs.
The sell-off in AI shares eased during the day, helping broad US indexes recover from early losses.
- Who
- US stock indexes and companies including Marsh & McLennan, Kimberly-Clark and Bank of New York Mellon.
- What
- US stocks rose as company profits and forecasts beat expectations, while AI shares remained volatile.
- When
- Thursday, October 15, 2026, as described in the article published October 16.
- Where
- Wall Street and US markets.
- Why
- Strong company results supported stocks. Investors remained concerned about AI spending costs and more expensive borrowing.
This story does not have two clearly opposing sides.
A sell-off in AI stocks began on Wall Street and spread to other markets.
The S&P 500 opened lower after declines in South Korea and Japan, then recovered as AI-stock losses moderated.
US indexes ended higher, with the S&P 500 up 0.3 per cent and the Dow up 1.1 per cent.
- S&P 500
- Rose 0.3 per cent
- Dow Jones Industrial Average
- Rose 556 points, or 1.1 per cent
- Nasdaq composite
- Added 0.1 per cent
- Marsh & McLennan
- Rose 4.6 per cent after reporting a stronger-than-expected profit
- Kimberly-Clark
- Rose 4.7 per cent after forecasting higher-than-expected quarterly revenue and profit
- Nvidia
- Fell 1.8 per cent
What people are saying
BNY saw strength across its regions
it expects strong demand to continue in the final three months of 2026